Central and West Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 613.49
% of GDP (2019): 4.59%
% of Regional Total Package: 1.26%
Package Per Capita in USD: 207.42
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline
01A - Short-term lending info_outline
01B - Support policies for short-term lending info_outline

No amount/estimate: Provided a few foreign exchange swap operations to assure sufficient liquidity in AMD and in foreign currency.

01C - Forex operations info_outline

(i) No amount/estimate: Provided a few foreign exchange swap operations to assure sufficient liquidity in AMD and in foreign currency. The CBA has undertaken some foreign exchange sales to limit excessive dram volatility since; (ii) The exchange rate has been allowed to adjust flexibly and has depreciated around 3% against the USD since the end of February. No balance of payment or capital control measures have been adopted.

02 - Credit creation info_outline AMD25,000,000,000 USD51,123,841
02A - Financial sector lending/funding info_outline AMD25,000,000,000 USD51,123,841

Allocate a total of AMD25 billion (over USD50 million) to co-finance loans for companies that borrow money from Armenian banks in the national currency to pay salaries, taxes, bills and purchase raw materials. This amount includes subsidy for the interests of these of loans.

02B - Support policies for long-term lending info_outline
02B1 - Interest rate reductions

(i) No amount/estimate: 28 April 2020, The Central Bank of Armenia (CBA) reduced the policy rate by 25 bps to 5%. On 17 June 2020, this rate was further reduced by 50 bps to 4.5%. On 15 September 2020, this rate was reduced to 4.25%, where it has since remained unchanged.

02B2 - Other policies to support long-term lending
02C - Loan guarantees
03 - Direct long-term lending info_outline
03A - Long-term lending info_outline

No amount/estimate: 27 March 2020, Preferential loans to SMEs in sectors including manufacturing, transportation and storage economy, tourism, other service sectors, and healthcare. The loans will be interest-free for the first 2 years and 12% for the third year.

03B - Forbearance
04 - Equity support info_outline
05 - Health and income support AMD30,000,000,000 USD61,348,610
05A - Health support
05B - Income support AMD30,000,000,000 USD61,348,610
05B1 - Tax and contribution deferrals and policy changes
05B2 - Tax and contribution rates reduction
05B3 - Wage support and subsidies to individuals and households AMD30,000,000,000 USD61,348,610

AMD30 billion (over USD60 million) for urgent social assistance for the impoverished. See Measure 9: No breakdown.

05B4 - Subsidies to business

(i) No amount/estimate: Subsidize the interest rates of co-financed loans for companies that borrow money from Armenian banks in the national currency to pay salaries, taxes, bills and purchase raw materials; (ii) No amount/estimate: 26 March 2020, Stimulus package of AMD500 million each to struggling businesses; (iii) No amount/estimate: A one-time grant in the amount of the salary of every fifth employee is provided for companies with 2-50 employees. Similar measures were approved for companies with up to 100 employees, and both measures were extended until 31 May 2020.

05B5 - Indirect income support
05B6 - No breakdown (income support)
05C - No breakdown (health and income support)
06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received AMD160,971,862,918 USD329,180,000
08A - Swaps info_outline
08B - International loans/grants AMD160,971,862,918 USD329,180,000
08B1 - Asian Development Bank AMD21,134,953,264 USD43,220,000

(i) 22 March 2020, Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases - USD0.5 million; (ii) Nonsovereign Operations: Guarantee under the Trade Finance Program (Additional Financing) - USD14.46 million (with another USD29.37 million co-financed); (iii) Nonsovereign Operations: Loan under the Trade Finance Program (Additional Financing) - USD5.19 million (with another USD5.44 million co-financed) [update]; (iv) 28 May 2020, COVID-19 Working Capital Support Project - USD20 million (with another USD25 million co-financed); (v) 1 July 2020, Promoting Digital Finance Solutions for Inclusive Finance among Partner Financial Institutions - USD0.05 million; (vii) 13 July 2020, Addressing Health Threats in the Central, West, and East Asia Region - USD0.13 million; (viii) 24 July 2020, Due Diligence and Capacity Development of Trade Finance Program Banks - USD0.11 million; (ix) 3 August 2020, COVID-19 Emergency Response - USD2 million; (x) 6 August 2020, Distance Education for Resilience Project in Armenia - USD0.75 million; (xi) 26 November 2020, Addressing Health Threats in the Central, West, and East Asia Region (Additional Financing) - USD0.03 million [update].

08B2 - Other AMD139,836,909,655 USD285,960,000

(i) April 3, The World Bank allocated USD3 million to address the country’s urgent needs for equipment and supplies needed for the intensive care of people with a confirmed COVID-19 diagnosis; (ii) May 18, USD280 million in total aid immediately available after an augmentation of its Stand-By Arrangement with the IMF; (iii) As of May 26, USD2.7 million to prepare laboratory systems, activate case-finding and event-based surveillance, support technical experts for response and preparedness, bolster risk-communications, and more; (iv) August 27, USD260,000 in COVID-19 relief from Canada.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown AMD245,000,000,000 USD501,013,646

(i) Government assistance package with a headline amount of at least AMD300 billion to mitigate the socio-economic issues related to the pandemic, although this includes a variety of direct spending, state-sponsored loans and increased investment. The key measures include (a) direct labor subsidies to micro enterprises and SMEs that retain their employees and maintain their wage; (b) strategic support to innovative companies, although the details of this last element are not yet final; (ii) 27 March 2020, For Armenia-registered economic entities or individual entrepreneurs with competitive business ideas, 75% of financial resources are provided as interest-free loans with a maturity of eight years and the other 25% are provided as grants.

11 - Other Economic Measures

14 May 2020, Temporary restrictions on the export of medical masks, gloves and goggles, biohazard suits, medical robes, antiviral medicines, gauze and other medical products.

12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

16 March 2020, The government declared a national state of emergency, first until 14 April, but subsequently extended to 14 May, 13 June, 13 July, and finally being lifted on 11 September. During the state of emergency, travel bans were imposed on citizens from high-risk countries. Public transportation and other domestic travel was reopened earlier, on 18 May.

12B - Measures affecting business and workplace

16 March 2020, As part of the state of emergency, the government implemented lockdowns and closures of public spaces, as well as social distancing protocols and other health precautions. Retail businesses and restaurants were allowed to reopen earlier, on 18 May.

12C - Others

Quarantine is still in effect until 11 January 2021, which bans large gatherings and requires 14-day self-isolation and testing for people entering the country.